What is MSRP?
The Sticker Price (or MSRP - Manufacturer’s Suggested Retail Price) is the retail price set by the factory. According to AAA, the Sticker Price is marked up by an average of 13.5% from what the dealer paid for the vehicle.
What is Factory Invoice?
This is what the manufacturer theoretically charges the dealer for the vehicle. While this price includes manufacture costs, such as regional ad fees, it does not include discounts, incentives, or holdbacks (money allocated back to the dealer upon sale). These considerations make the dealer’s actual cost lower than the Factory Invoice.
What is Dealer Cost?
This is the aforementioned Factory Invoice, but with the holdback taken out. This is essentially what the cost is to the dealer since he will be given the holdback money in the future.
What is the Estimated Total?
The FactoryPricing information and Bottom Line should be used when negotiating with the car dealer. For a no-hassle experience, FactoryPricing recommends buying from one of our Certified dealers found on our website.
